League of Women Voters of California Education Fund
	Sonoma County, CA November 6, 2012 Election
	Measure V Transactions and Use Tax City of Healdsburg Majority Approval Required Pass: 2,800 / 55.6% Yes votes ...... 2,235 / 44.4% No votes See Also: Index of all Measures

Arguments For Measure V

Arguments Against Measure V

The recession and recurring State takeaways have dramatically impacted the City's ability to maintain its core services. Reduced development and tourism activity has led to decreased revenue from sales, property and transient occupancy taxes and the dissolution of redevelopment has adversely impacted economic development efforts. Expenses have outpaced revenues; however, over the past three years the City Council has made a concerted effort to reduce expenses. Cost savings actions taken include: reduction of workforce by 18%; reduced employee benefits resulting in approximately $2.3 million savings in personnel costs; departments were downsized and streamlined for efficiency; across the board budget cuts and elimination of many noncore activities. More cuts can be made, but not without significant impacts to residents. Despite these cuts, the FY 2012/13 budget was adopted with a projected deficit of $807,666. Additional revenue is necessary for the City to maintain the level and quality of services Healdsburg residents have come to expect. We need Measure V. Accountability regarding the use of Measure V revenues is very important. That is why the initiative calls for annual reports citing how the funds are spent. Citizens will be able to see what programs, projects and/or services were funded each year. Measure V is not permanent; the tax will automatically expire after 10 years. Vote Yes on Measure V because it provides a protected and reliable source of revenue, estimated to raise $1 million per year. These funds cannot be taken by the State. This is a local measure, under local control, so funds can be spent locally. Revenue generated by Measure V will safeguard the City's ability to maintain current programs and services. It will also help prevent further cuts to programs and services. Join us in voting yes on Measure V. HEALDSBURG CITY COUNCIL s/ Gary W. Plass, Mayor HEALDSBURG CITY COUNCIL s/ Susan E. Jones, Vice-Mayor s/ Mark Decker HEALDSBURG CHAMBER OF COMMERCE s/ Carla A. Howell, President/CEO s/ Jesse D. Shaw Rebuttal to Arguments For NO REBUTTAL WAS SUBMITTED TO ARGUMENT IN FAVOR OF MEASURE V

Basic government services are eroding across California as soaring pension costs overwhelm city budgets. Healdsburg is no different. Some California cities have declared bankruptcy and more are expected to do so as the public employee pension crisis goes unchecked. Sales tax measures merely delay the inevitable reckoning and even make matters worse as pension liabilities continue to grow. Healdsburg devotes fully 95% of its budget to police and fire services yet still faces a $26 million unfunded employee pension liability. With over 35% of the city's public safety payroll cost devoted to pensions, neither the city nor its employees have made a meaningful effort to rein in these expenses. Sonoma County, for example, pays about 20% of payroll for pensions and that is considered unsustainable. The County's goal is to get that cost down to 10% of payroll in 10 years. To be sure, Healdsburg has undertaken some baby steps toward pension reform. Employees are now paying more of the employees' share of annual pension contributions, although one must ask why the city was paying the employees' share in the first place? And two-tiered plans have been adopted that impose salary and benefit reductions on the next generation of workers. Again, one must ask if placing the lion's share of the burden on our children so that current employees may continue to enjoy overly generous compensation and benefits is how we intend to solve the problem? Current public safety employees retain the same compensation and benefits that have led to the current crisis. There have been no reductions to either. Until the public employees' unions step up and to do their fair share to reduce unsustainable compensation and pension costs, residents should not be expected to shoulder a greater burden. We recommend a no vote. SONOMA COUNTY TAXPAYERS' ASSOCIATION s/ Dan Drummond, Executive Director s/ Jack Atkin, President Rebuttal to Arguments Against The fiscal crisis facing Healdsburg is the result of a combination of factors: the on-going recession, weak economy, decreases in sales, property and transient occupancy taxes, and state raids on city monies. Pension liabilities are not the cause of the City's general fund deficit. Despite the reduced revenues, the City has continued to provide a high level of service to its citizens. The argument against Measure V is factually incorrect. Public safety is 8% of the total budget and 83% of the general fund budget. Pensions account for 22% of payroll costs for public safety and 17% for all employees. The referenced $26 million unfunded pension liability was derived through a Stanford research project based on assumptions, not actual circumstances. Unfortunately, this figure has been represented as a real calculation; that's simply not accurate. The City Council cannot unilaterally eliminate or change employee benefits. By law, cuts to employee benefits are subject to collective bargaining. Furthermore, retirement benefits are legislated by the California Public Employees Retirement Law. Cities do not have authority to impose pension formulas or retirement plans outside of CalPERS options. Despite these limitations, the City Council and employees have taken significant steps to reduce personnel costs. All bargaining units offered concessions. Employees saw a reduction in benefits of 5-10% and there have been no pay raises since 2008. We need employees to pro- vide essential services. The Council remains committed to moving the City toward financial sustainability. Vote yes on Measure V. HEALDSBURG CITY COUNCIL s/ Gary W. Plass, Mayor s/ Mark L. Decker HEALDSBURG CITY COUNCIL s/ Susan E. Jones, Vice Mayor s/ Jesse D. Shaw HEALDSBURG CHAMBER OF COMMERCE s/ Carla A. Howell, Pres/CEO

Full Text of Measure V

Resolution No. 77-2012 EXHIBIT A CITY OF HEALDSBURG ORDINANCE NO.______ AN ORDINANCE OF THE CITY OF HEALDSBURG IMPOSING A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE STATE BOARD OF EQUALIZATION WHEREAS, the State of California is faced with one of the largest deficits in memory, currently estimated at more than $15 billion; and WHEREAS, the State began shifting property tax revenue away from cities in the 1990's and these "takeaways" continue as evidenced by the State's recent elimination of the City's redevelopment agency and its confiscation in June 2012 of millions in agency property tax revenues that could have been used on local projects; and WHEREAS, in addition to State takeaways, the City - like all California cities - has faced declining revenues from falling home prices and reduced consumer spending while costs have increased to fund essential City services residents rely upon; and WHEREAS, through this financial crisis the City has practiced fiscal prudence by eliminating staff, obtaining concessions from bargaining units, trimming contract services, reducing supplies, centralizing purchasing, salvaging and recycling materials, auditing tax and licensing programs to collect delinquent fees and improve compliance, pursuing contracts for shared services where appropriate, and diligent fiscal management by department heads; and WHEREAS, despite the City's best efforts, on June 18, 2012 the City Council unanimously approved Resolution No. 65-2012 adopting the Fiscal Year 2012-13 Operating Budget while recognizing that additional revenue would be needed to maintain and preserve the level of services desired by City residents; and WHEREAS, without additional revenue, the City will be required to make additional cuts to address its budget shortfall which will have the effect of further reducing critical government services; and WHEREAS, a local finance measure would protect and maintain City programs and services because the money is legally required to stay in the community and cannot be taken by the State, providing locally controlled funds for local services; and WHEREAS, after considering information and materials provided by the public and City staff, receiving public comment and staff presentations throughout the budget process and at special meetings expressly called for the purpose of considering possible revenue measures, the City Council has concluded that to obtain the revenue necessary to maintain and preserve service levels the Council should call an election to ask the voters of the City to approve a 10-year local transactions and use tax, the revenue from which could be used to support general municipal services; and WHEREAS, on the basis of the foregoing, the City Council determined that it was appropriate to place a measure regarding a general transactions and use (sales) tax before the voters at the November 6, 2012 general election; and WHEREAS, the tax to be submitted to the voters, if approved, would be imposed on retail transactions and use of personal property. The tax rate would be one-half of one percent (0.5%) of the sales price of the property. The tax revenue would be collected by the State Board of Equalization and remitted to the City. The tax would be in effect for 10 years, and would then expire automatically, unless extended by the voters. The tax shall be approved if the measure receives at least a simple majority of affirmative votes; and WHEREAS, the City Council is authorized by California Elections Code Section 9222 to place measures before the voters; and WHEREAS, Elections Code Sections 9219 and 9282 set forth the procedures for arguments in favor of or in opposition of any City measure; and WHEREAS, Elections Code Sections 9220 and 9285 set forth the procedures for rebuttal arguments; and WHEREAS, it is desirable that the election be consolidated with the statewide election to be held on the same date and that within the City, the precincts, polling places and election officers of the two elections be the same, and that the Sonoma County Department of Elections canvass the returns of the General Election and that the election be held in all respects as if there were only one election; and WHEREAS, this Ordinance is exempt from the California Environmental Quality Act (Public Resources Code §§ 21000 et seq., "CEQA," and 14 Cal. Code Reg. §§ 15000 et seq., "CEQA Guidelines"). The transactions and use tax approved by the voters is a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the City would undertake the required CEQA review for that particular project. Therefore, under CEQA Guidelines section 15060 review under CEQA is not required; NOW THEREFORE, THE PEOPLE OF THE CITY OF HEALDSBURG DO ORDAIN AS FOLLOWS: Section 1. Amendment of Code The Healdsburg Municipal Code is hereby amended by the addition of a new Chapter 3.06 to read as follows: 3.06.010 Title. This chapter shall be known as the "Healdsburg Transactions and Use Tax Ordinance." The City of Healdsburg hereinafter shall be called "City." This ordinance shall be applicable in the incorporated territory of the City. 3.06.020 Purpose. The ordinance codified herein is adopted to achieve the following, among other, purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2 which authorizes the City to adopt this tax ordinance which shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax ordinance that incorpo- rates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax ordinance that imposes a tax and provides a measure therefore that can be administered and collected by the State Board of Equalization in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the State Board of Equalization in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax ordinance that can be ad- ministered in a manner that will be, to the greatest degree possible, consistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, minimize the cost of collecting the transactions and use taxes, and at the same time, minimize the burden of record keeping upon persons subject to taxation under the provisions of this ordinance. 3.06.030 Operative Date. "Operative Date" means the first day of the first calendar quarter commencing more than 110 days after the adoption of this ordinance, the date of such adoption being as set forth below. 3.06.040 Contract with State. Prior to the Operative Date, the City shall contract with the State Board of Equalization to perform all functions incident to the administration and operation hereof. If the City has not contracted with the State Board of Equalization prior to the Operative Date, it shall nevertheless so contract and in such a case the Operative Date shall be the first day of the first calendar quarter following the execution of such a contract. The Council may make any technical amendments to this Chapter required by the State Board of Equalization, except for any changes affecting the tax rate, its manner of collection, or the purpose for which the revenue from the tax may be used. 3.06.050 Transactions Tax Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the City at the rate of one-half of one percent (0.5%) of the gross receipts of the retailer from the sale of all tangible personal property sold at retail in the City on and after the Operative Date of this Chapter. 3.06.060 Presumption as to Place of Sales. For the purposes of this Chapter, all retail sales are consummated at the place of business of the retailer, unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the State sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the State or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be prescribed and adopted by the Board of Equalization. 3.06.070 Use Tax Rate. An excise tax is hereby imposed on the storage, use, or other consumption in the City of tangible personal property purchased from any retailer on or after the Operative Date of this Chapter, at the rate of one-half of one percent (0.5%) of the sales price of the property subject to the tax. The sales price shall include delivery charges when such charges are subject to State sales or use tax regardless of the place to which delivery is made. 3.06.080 Adoption of Provisions of State Law. Except as otherwise provided in this Chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this Chapter as though fully set forth herein. 3.06.090 Limitations on Adoption of State Law and Collection of Use Taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: (1) The word "State" is used as a part of the title of the State Controller, State Treasurer, State Board of Control, State Board of Equalization, State Treasury, or the Constitution of the State of California; (2) The result of that substitution would require action to be taken by or against this City or any agency, officer, or employee thereof rather than by or against the State Board of Equalization, in performing the functions incident to the administration or operation of this Chapter. (3) In those sections, including, but not necessarily limited to sec- tions referring to the exterior boundaries of the State of California, where the result of the substitution would be to: a) Provide an exemption from this Tax with respect to cer- tain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this Tax while such sales, storage, use or other consumption remain subject to tax by the State under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; (b) Impose this Tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. (4) In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word "City" shall be substituted for the word "State" in the phrase "retailer engaged in business in this State" in Section 6203 and in the definition of that phrase in Section 6203. 3.06.100 Permit Not Required. If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this Chapter. 3.06.110 Exemptions and Exclusions. A. There shall be excluded from the measure of the Tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. There are exempted from the computation of the amount of the trans- actions tax the gross receipts from: (1) Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the County in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. (2) Sales of property to be used outside the City which is shipped to a point outside the City, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the City shall be satisfied: (a) With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-City address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and (b) With respect to commercial vehicles, by registration to a place of business out-of-City and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. (3) The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the Operative Date of this Chapter. (4) A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the Operative Date of this Chapter. (5) For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pur- suant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. There are exempted from the use tax imposed by this Chapter, the storage, use or other consumption in this City of tangible personal property: (1) The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. (2) Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. (3) If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the Operative Date of this Chapter. (4) If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the Operative Date of this Chapter. (5) For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. (6) Except as provided in subparagraph (7), a retailer engaged in business in the City shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the City or participates within the City in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the City or through any representative, agent, canvasser, solicitor, subsidiary, or person in the City under the authority of the retailer. (7) "A retailer engaged in business in the City" shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Chapter 2 of Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the City. D. Any person subject to use tax under this Chapter may credit against that tax any transactions tax or reimbursement for transaction tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.06.120 Amendments. All amendments subsequent to the effective date of this Chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this Chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this Chapter. 3.06.130 Enjoining Collection Prohibited. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against the State or this City, or against any officer of the State or the City, to prevent or enjoin the collection hereunder, or Parts 1.6 and 1.7 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.06.140 Annual Audit and Review. At the time the City's annual audit is performed, the City shall complete a report reviewing the collection and expenditure of revenue from the tax authorized by this Chapter. The report shall be a public document and shall be reviewed by the City Council at the time it conducts budget deliberations. Section 2. Severability If any section, subsection, sentence, clause or phrase or word of this Ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. Section 3. Effective Date This Ordinance relates to the levying and collecting of the City transactions and use tax and shall take effect immediately. Section 4. Termination Date The authority to levy the tax imposed by this ordinance shall expire on the tenth (10th) anniversary of the last day of the calendar quarter preceding the Operative Date set forth above. APPROVED (or DENIED) by the following vote of the People of the City of Healdsburg on November 6, 2012: ______YES _______NO ______ TOTAL VOTES RESULTS DECLARED by the City Council of the City of Healdsburg on_____, 2012. SO ORDERED ________________________ Gary W. Plass, Mayor ATTEST _______________________ Maria Curiel, City Clerk Dated:__________________